Time To Take Some Early Profits
Early Profit - AT&T (T) Hello Smart Option Sellers! We currently have a put-sell position on T that is in the black, but not near enough to our "80% Rule" threshold where we typically take profits. You might know that T is in the process of trying to buy Time Warner (TWX), of which the U.S. Department of Justice (DOJ) is trying to thwart the deal. Although the legal wranglings could take some time, I just don't like when a company gets too much government interaction with a deal. It can cause investor nervousness and push the stock to levels which might not be beneficial for us, albeit because of irrational panic. With that said, we are going to take small profits on this play today so we don't put undue stress on ourselves waiting on the outcome of T vs DOJ. We have just under two month's time left on the position, which we could probably ride out, but I don't want to chance it. If you agree with me, and feel you want to lock in small gains today, you can follow the instructions below. Note: If you have this put-sell position in your account, then you will execute the buy-back order today. If you don't have the position, then you can disregard these instructions. Here's what you can choose to do: Buy-back (buy-to-close) all of your T January 2018 $31 put options for a limit buy price of $.15 per contract or cheaper, GTC, as a closing transaction (buy-to-close). Currently, the market on this put option is $.13 bid/$.17 offer, so we'll be trying to buy it right in the middle of the current range. We may get filled or we may not, depending on what the stock does today. If it moves higher, we should definitely get filled. If the stock moves lower, it might take us a couple more days. Get those orders in now and let us know how you do. I will go over the details tomorrow. That's all for now. Continue to hold all other trades as-is. Check the Current Portfolio below for updates & instructions. You can always reach us here
Regards, Lee Let's Grab That Cash!